Annual Report 2010 - AdP

in certain regions of the country, on the development of a model for financing services, insofar as, under current conditions, the
service costs identified prove significantly greater than the levels of tariffs deemed socially acceptable.
Within this context, two State-Municipality partnerships were set up for water supply and sanitation services, specifically, AdRA - Águas
da Região de Aveiro, involving ten municipalities from the Aveiro region and AgdA - Águas Públicas do Alentejo, a public partnership
attracting 21 municipalities in this region. In addition, at the end of November 2010, two partnership projects were submitted for
approval by the authorities, one made up of fourteen Noroeste municipalities and another thirteen Mondego and Lis municipalities.
As regards the water supply and sanitation sector, we would here highlight the following events as relevant within the context of
implementing the strategic orientations:
• The conclusion of the process leading to the founding of the Noroeste Multi-municipal System (Águas do Noroeste) resulting
from the integration of those existing in the region (Águas do Minho e Lima, Águas do Cavado and Águas do Ave) and the
presentation of the proposal regarding the merger of Águas do Mondego and Simlis;
• The founding of Simdouro involving the participation of the municipalities of Arouca, Baião, Castelo de Paiva, Cinfães, Paredes,
Penafiel and Vila Nova de Gaia and the signing of the concession contract with the Ministry of Environment and Territorial Planning,
awarding the company the management and operation of the Grande Porto Multi-municipal Sanitation System;
• The expansion of the Ria de Aveiro sanitation multimunicipal system to the municipalities of Cantanhede and regions of Oliveira
do Bairro and Santa Maria da Feira, with additional expansion of the system to the municipalities of Oliveira de Azeméis, Oliveira
de Frades, São Pedro do Sul, Sever do Vouga and Vouzela currently under analysis.
• Integration of the municipalities of Entroncamento, Mação, Sardoal and Vila Nova da Barquinha into Águas do Centro, raising to seventeen
the number of councils served by the Raia, Zêzere e Nabão Multi-municipal Water Supply and Wastewater Sanitation System.
The Water Business Unit also pressed on with analysis and renegotiation of system concession contracts in order to ensure the
economic-financial sustainability of operations and the recovery of the tariff deficits relating to the original conditions, specifically as
regards the concession timeframe, additional investments and the financing necessary and balanced tariffs, among other issues.
As regards EPAL, there was an expansion in the number of municipalities supplied, specifically some of the municipalities integrated
into the Oeste multi-municipal system, as well as the investments made in the improvement of asset management, water quality
protection, in minimising the impact of climate change, in infrastructure security and resilience within an overall framework of raising
efficiency and improving services to clients.
Beyond carrying out investments in a diverse range of water treatment infrastructures and replacing the domestic supply network
in Lisbon and the inauguration of the EPAL’s Central Laboratory, another 2010 highlight featured the approval of the Water Security
Plan that represents an important tool for an integrated and systemic vision of the risks to water quality and quantities for supply in
conjunction with the excellent results in terms of minimising risks with the best ever result of 11.8% for non-invoiced water in the
Lisbon distribution network.
Compliance with the strategic guidelines and objectives for the mandate underpinned AdP Group activities in the Waste Business
Unit, specifically in terms of the completion of company mergers designed to obtain economies of scale and the economic and
financial sustainability of the respective operations, as well as expanding multi-municipal systems to adjoining municipalities. Examples
include the expansion of waste treatment and recovery in the Norte Central region with the founding of Resinorte - Valorização e
Tratamento de Resíduos Sólidos, S.A. out of the merger of three group companies and two municipal associations and the launch
of the new Valorsul - Valorização e Tratamento de Resíduos Sólidos das Regiões de Lisboa e do Oeste, S.A. and the respective multimunicipal
system out of the merger of the Valorsul and Resioeste companies, in addition to the Valnor expansion to the municipalities
of Raia Pinhal (Beira Interior).
As a consequence of this change to the technological paradigm imposed by this new legal framework for municipal solid waste
(MSW) management, this business sector embarked on a new cycle of investments, specifically involving the construction of
Mechanical and Biological Treatment (MBT) Units and anaerobic digestion Organic Recovery Plants (ORPs).
Within the scope of landfill biogas energy recovery, tenders are currently under way for the construction and installation of energy
recovery units at concession systems, with the launch of these operations boosting installed landfill biogas potential to 21.8 MW.
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